Question

The period over which a property will yield a return on the investment, i.e., be put to profitable use.

A. Depreciation
B. Loan-to-value ratio
C. Capitalization rate
D. Amortization period

Answer 1

The correct answer is C. Capitalization rate.

Step-by-step explanation:

The correct answer is C. Capitalization rate. The capitalization rate is used to determine the value of an income-producing property and represents the rate of return an investor can expect from the property. It is calculated by dividing the property's net operating income by its market value.